Post Office NSC small savings scheme: Rs 11,000, Rs 21,000, Rs 51,000 investment grows into Rs 15,939, Rs 30,430, Rs 73,901 in this 5-year certificate scheme; see other examples

 

NSC small savings scheme interest rate latest update: The Post Office National Savings Certificates (NSC), also known as the NSC small savings scheme, turns a one-time investment of Rs 10,000 into Rs 14,490 over a maturity period of five years, according to the India Post website, indiapost.gov.in. Going by the same calculation, a sum of Rs 50,000 invested in this guaranteed, government-backed scheme grows into Rs 72,452 (principal of Rs 50,000 and interest of Rs 22,452) in the five-year period. One can invest any amount in multiples of Rs 100 starting at Rs 1,000 in this post office certificate scheme without any upper limit. For the final quarter of FY24, the NSC scheme delivers a return of 7.7 per cent compounded annually and payable at maturity. Read on to know more about this investment plan.

National Savings Certificate (NSC) interest rate calculation: Did you know that the National Savings Certificate small savings scheme is a fixed-income certificate investment plan that not only grows your money steadily but also offers income tax benefits worth up to Rs 1.5 lakh a year? The National Savings Certificate (NSC), one of the few guaranteed income small savings schemes available in post offices, will deliver a return of 7.7 per cent per annum for the quarter ending June 30, 2024, according to the India Post Website, indiapost.gov.in.

The interest is compounded annually and paid at a maturity period of five years.  

First things first, here are five important details to know about the NSC savings scheme:  

What is NSC? 

The National Savings Certificate (NSC) is a fixed-income, certificate-based investment scheme, which essentially means that investment in this financial instrument gets locked for a predetermined period and is returned to the depositor along with applicable interest accumulated at a predetermined, 'fixed' rate of interest after the completion of that period. This period is known as the maturity period. 

National Savings Certificate investment examples

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Now, given the 7.7 per cent interest rate applicable to the NSC small savings scheme is compounded annually, here's a table illustrating how initial investments of Rs 1,100, Rs 11,000, Rs 21,000, and Rs 51,000 grow at the end of each year in this guaranteed income instrument: 

PeriodCorpus at the end of each year till maturity
Rs 1,100 investment Rs 11,000 investmentRs 21,000 investmentRs 51,000 investment
End of first yearRs 1,185Rs 11,847Rs 22,617Rs 54,927
End of second yearRs 1,276Rs 12,759Rs 24,358.5Rs 59,156
End of third yearRs 1,374Rs 13,742Rs 26,234Rs 63,711
End of fourth yearRs 1,480Rs 14,800Rs 28,254Rs 68,617
End of fifth year (maturity)Rs 1,594Rs 15,939Rs 30,430Rs 73,901

Hence, the amounts at the end of the first, second, third, and fourth years given above are only to understand how the money grows gradually till the investor reaches the end of the maturity period, and are not the amount the investor gets in case the premature withdrawal option is exercised.   

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What are the investment limits applicable to the National Savings Certificates?

While no upper limit applies to the NSC scheme, one can start an investment at the post office against the payment of a minimum one-time sum of Rs 1,000 or any other amount in multiples of Rs 100, according to the India Post website. 

Who can invest in the post office NSC scheme?

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